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September 12, 2019

Seeking Alpha on McDonald's

I don't usually post articles from Seeking Alpha because it's just some one's opinion and the articles are written for money, not necessarily for insight.

But this one is different as the author recognizes the importance of the Owner/Operator in 
the future of the McDonald's business.

It's Not The End Of McDonald's Tug-O-War With U.S. Franchisees
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5 comments:

Anonymous said...

SPOT ON article and a MUST READ!

Proof positive of the urgency to support the NOA!


MMGA

Anonymous said...

At McDonald's - we make a hamburger. The "art" of McDonald's was the QSC - and most importantly SPEED. For the last decade, SPEED has not been a direction of McDonald's. Menus are no longer simplified - and the designs and service models no longer reflect the AMERICAN consumer role of FAST.

#1 Complaint - SPEED
#2 Complaint - Accuracy

Nothing the system is focused on addresses those concerns.

Discounting alone is not a driver. However, even those methods have no rhyme or reason. Mailers, POS PROMOTIONS, Global Mobile App, 123DM, Dollar drink - its hard to understand what McDonald's wants to morph itself into? Dollar General or Macy's?

The system has added ORDER POINTS on a overall saturated grill production system. The NEXT IN LINE Production System, the Optimized Production Line (OPL) will not fix SPEED. It should be called the NIL system, for thats what benefit it achieves. Overall operational design no longer fits the "McDonald's" model - it no longer separates itself from the competition. This violates the typical KROCISM, "but its not Ray Kroc's McDonald's any longer". Perhaps what's needed is the simple BACK TO BASICS approach - a RAY of Sunshine onto our menus, SIMPLIFICATIONS.

A modified strategy for discounting to balance our menu boards. A complete removal of CORPORATE or even NATIONAL pricing strategies. Our markets are too diverse for these models. It is why McDonald's built its business on the LOCAL STORE MARKET - its why the Franchise Agreement requires owners to LIVE and WORK within their communities.

The entire corporate strategy over the last 10-years has violated every essential KROCISM that built the brand into the powerhouse it ONCE was...

Anonymous said...

There are still too many MCD's in the USA today. In some markets we are our own biggest competitor. Too many stores, too many operators, too much debt. The company has lost much of its understanding of store operations. The MCD bureaucrats think they know more than they really do. Many regional managers are clueless. MCD, IMO, needs to continue to reduce its own costs. Start with Chris K. he is an idiot know nothing.

Anonymous said...

As long as we have to spend huge money on half baked ideas on MCD's corporate owned real estate, we will be in trouble. They don't get hurt by misspent money on their property, that's our end of this franchise bargain.

Anonymous said...

A quote from a few years ago. Quite prescient:


Anonymous said...
These are the worst of times. New US leadership (new president) has decided to lead with blackmail, intimidation and bullying tactics. Moreover, his style is one of arrogance and disdain for those of us that have dedicated numerous decades of our lives building good will and profit for brand MCD.
Spending one's way to success through increasing debt will NOT work. The new US presidents projects are flawed, untested and fiction of his own imaginary world. MCD's long term opportunity to turn lost transactions will not happen without field support. Support is minimal outside of a small number of NLC PUPPETS posing as franchisee leadership representatives. For now we are doomed to continue a downward transaction spiral.
4/12/2017